BCLYF - Barclays PLC (BCS) Q1 2024 Earnings Call Transcript
2024-04-25 09:55:25 ET
Barclays PLC (BCS)
Q1 2024 Earnings Conference Call
April 25, 2024 04:30 AM ET
Company Participants
C.S. Venkatakrishnan - Group Chief Executive
Anna Cross - Group Finance Director
Conference Call Participants
Joseph Dickerson - Jefferies
Benjamin Toms - RBC
Alvaro Serrano - Morgan Stanley
Rohith Chandra-Rajan - Bank of America
Guy Stebbings - BNP Paribas
Christopher Cant - Autonomous Research
Robin Down - HSBC
Jonathan Pierce - Numis Corp.
Presentation
Operator
Welcome to Barclays Q1 2024 Results Analyst and Investor Conference Call. I will now hand over to C.S. Venkatakrishnan, Group Chief Executive, before I hand over to Anna Cross, Group Finance Director.
C.S. Venkatakrishnan
Good morning. Thank you for joining us on today's results call for the first quarter of 2024. At our investor update a little over nine weeks ago, we set out a three-year plan to deliver a better run, more strongly performing and higher returning Barclays. To do so, we aim to make Barclays a simpler, better and more balanced bank. We are executing in a disciplined way against this plan and this is our first progress report against our longer journey.
I am happy with our overall Q1 performance, which keeps pace with our financial targets for 2024 to 2026. These are: first, grow returns with a target RoTE of about 12% in 2026; second, to rebalance the bank with a target to reduce RWAs in the Investment Bank from 58% of group RWAs to around 50% in 2026; and third, to distribute more capital to shareholders with a target of returning at least £10 billion over 2024 to 2026. We also set a target for return on tangible equity above 10% in 2024. And in the first quarter, we delivered 12.3%, in line with our plan.
Total income for the quarter was £7 billion, of which group net interest income, excluding the Investment Bank and head office was £2.7 billion. Our cost-to-income ratio was 60%, demonstrating ongoing cost discipline as we see the benefit of the cost actions which we took in the fourth quarter of last year coming through. We achieved around £200 million of gross cost efficiency savings in Q1 out of our targeted £1 billion for the full-year 2024.
We remain well capitalized. Our CET1 ratio was 13.5%, which is at the midpoint of our target range. And we have completed about 35% of the £1 billion share buyback which we announced at full-year 2023. Across the bank, and within each of our five divisions, we are driving an improved operational and financial performance to enhance returns, which Anna will cover in more detail shortly.
Our business re-segmentation and the framework of targets which we laid out on the 20th of February, have helped to provide both internal and external transparency as well as accountability in our delivery. As Anna and I talked to our colleagues across Barclays, we are encouraged by how the organization has embraced this plan....
Barclays PLC (BCS) Q1 2024 Earnings Call Transcript